This is Leading Voices, a Wells Fargo podcast. Our clients think big, and so do we. And our Leading Voices Series, our leaders will share deep expertise across corporate banking, investment banking, fixed income, equities and commercial real estate while exploring the timely trends, actionable insights and strategic opportunities to help power your business into a better, more inspired and equitable future. With a focus on highlighting innovative ways, industry leaders and visionary clients are embracing new, sustainable strategies and solutions to navigate change, elevate their business growth and deliver on long term outcomes.
>> Danielle Squires:
Hi, I'm Danielle Squires, head of diverse segments for corporate and investment banking at Wells Fargo. Joining me today is Kristy Fercho, Head of Diverse Segments, Representation and Inclusion at Wells Fargo. And today, we're going to be discussing what our team does and how we work with diverse owned and diverse led companies and minority depository institutions, or MDIs, to help serve the diverse needs of all our clients. All right. Let's get started. Kristy, thanks for being here today. And you, as we just said, are head of diverse segments, representation and inclusion across all of Wells Fargo. Can you start by summarizing what your role entails and more specifically, how Wells Fargo thinks about diverse segments as a company and why this is absolutely critical to the work that we do?
>> Kristy Fercho:
Yes, thanks Danielle. And first, let me just say thank you for inviting me to be part of this with you today. So, yes, diverse segments, representation and inclusion, and it is a mouthful as it relates to a title, but each word was very specifically chosen. So the diverse segments part of this really focuses on our diverse customer segments and wanting to make sure that we are in a position to better serve and grow the business that we have with our diverse customer segments. And you think like diverse segments, people often think about underserved or the unbanked. And for us though, in financial services, it really represents this full spectrum all the way from unbanked and low to moderate income all the way up to ultra-high net worth. And the opportunities that exist in each one of our businesses. Across each one of those dimensions. The representation and inclusion is what you would think about when you think about more classic DE&I at companies. The representation really is wanting to make sure that we look like America at every level of the bank from kind of the entry level all the way up to the board, and that we are managing the business with that diverse mindset at all levels of the company. And then the inclusion is how does it all come together, really bringing the best of all of these diverse mindsets and perspectives and experiences to create better products and solutions in service of these diverse customer segments. And so, as we really think about kind of those three pillars, they really do come together for us very well. This is opportunity that you think about. And when you say, ‘Why is this important to Wells Fargo?’ It really is. When we look down the road and we think about what the U.S. population is going to look like, it is projected that the population will be more racially and ethnically diverse as the non-Hispanic white population continues to shrink. And in fact, by 2045, you'll actually see that the U.S. is majority minority. And so that business proposition in terms of the changing demographic in the country is really, really powerful. But when you look at what's actually happening there, right, the economic value of let's just focus on Hispanics, which is the fastest growing population that we have, if you were to aggregate all that economic value, Hispanics, the GDP of them would be $2.8 trillion, which would be like the fifth largest country. If you think of minority owned businesses, right, with annual sales of $1.5 trillion and growing and certainly the economic value of this minimum of $340 billion in wealth opportunity that is coming from Black and African American households, the value prop is pretty clear around the changing demographics and how important it is for Wells Fargo to be able to meet the needs of those customers. And so it's not this short term fix that we were looking to do. It really is this long-term commitment that we have as a company but really being intentional about what are the actions that we need to take. And I don't have to tell that to you, Danielle, you're actually on the front line of that bringing this to life every day within CIB. And so I would love for you to just share with the audience what does a diverse segment inside of the corporate investment bank, does that look like and how are you approaching the work on a day to day basis?
>> Danielle Squires:
I appreciate that, Kristy, and especially your description of diverse segments, representation and inclusion is really holistic and encompassing, and that's, that's really important. And it's specifically important for us in the corporate and investment bank as we take a look at it as to how can we help really grow and maximize positive outcomes for our diverse clients and communities. And we do that by granting greater access to the capital markets, creating connections where there aren't any, and trying to fill product gaps that are in the market. We believe wholeheartedly that deepening relationships are core to our business. As we've said it before, building trust with our clients, our partners, our communities. We want to grow our companies and we want to really do that across the entire financial ecosystem. And so, we look at it not just on, you know, diverse, owned and diverse led companies themselves, but how can we grow and diversify what you might consider sort of big, large, traditionally non-diverse leadership teams and large public companies? How can we help them, one, achieve their DE&I strategy and two, really maximize the work they do with diverse constituencies as well? And some of the things that we've done that I think folks could find interesting would be the work that we've done with diverse broker dealers and underwriters. And specifically, this is a contingent of fantastic market participants that just haven't had the ability, if you will, from a connectivity perspective, to play a part in the capital markets, the equity capital markets, the fixed income capital markets, the bonds really across that spectrum of debt and capital raising. They've got a great distribution network but haven't always been known to the companies and corporations who are out there issuing the bonds. And guess what? We know that, right? We both know the diverse broker dealers and underwriters, and we're both helping those companies issue their bonds. And so, we feel that it's important to connect those to play a part in really elevating the diverse broker dealers, underwriters, given the strength of their own financial capacities and the things that they can do, how can we bring that out to our clients? It helps our clients and it helps the diverse broker dealers. It helps us back at Wells Fargo. Really, this is the purpose, I think, of what we want to do throughout all of our diverse segments groups, but specifically in the corporate and investment bank. We'd love to see a paradigm shift in the market. I think too often we hear folks say that diverse business is philanthropic and solely morally good, but we know and we believe that you pointed out the case, and we believe that as well in the corporate investment bank, that diverse business is simply good business and it's a great business. And so for us, that's kind of sort of how we work and how we lead. And we do this through our fixed income markets. We do it through our real estate, our commercial real estate portfolio, and we do it in traditional investment banking both here and abroad. Just really there's a great opportunity to diversify business across the entire financial ecosystem. And that's what we're focusing on, which is why we're really excited about it, because there's a lot of work to do and we think we've got a lot of time to do this work. And I think one of the things that I talked about sort of creating those connections, partnership and engagement are really key pillars of the work that I do. And you've been instrumental in that. And one of the things that we've done lately together is be a part of the Black Business Leaders Summit that we recently hosted in New Orleans. And I really think that this is a great example of engagement and action. We brought 150 Black leaders from across all industries, from across the country to really sit and talk about where we can partner together, how we can build together, how we celebrated each other, too, Right? We took a moment to say the work that is getting done and how great it. Kristy, as we said, you were there with me on the ground. I'd love to also hear you talk a bit about what you saw and heard from our clients and your thought overall and how this engagement can help us all move this ball forward.
>> Kristy Fercho:
Well, one, it was an extraordinary experience and I think just the energy in the room was really palpable as I was describing it to someone, you know, kind of as senior Black leaders many of us spend a lot of time being the only one in the room. And I think the power of what was created at the Black Business Leaders Summit is there was a bunch of the only’s, right? And so all at once we were no longer the only’s is in the room. It was a group of all only's and the alignment and the common interest of what people want to achieve or that they were working on their own to be able to drive forward was really palpable. And, you know, the one thing that we know about this work is it can't be done alone. There is so much power in partnership and shared focus, and I think we really experience that at the Black Business Leadership Summit. I mean, sitting around the table for people and sharing ideas that individuals had about or things that they were working on those opportunities, it just became really clear that like, Oh, I'm working on that. Oh, you're doing that? Oh, I am too. Who do you know? And then the know you game and the opportunities really just came so clear as people then got excited about the opportunities to be able to work together, to be able to identify the common challenges that everybody was facing and then in saying, okay, how do we solve those together? Right? And really bringing that collective knowledge to the table to be able to advance it. But it also is this really intentional dialog and really deliberate dialog around how do we solve these problems. I think everyone knows kind of what the key issues and the problems were, but there was nobody sitting around to admire the problems. It really was how do we lean in and be able to do this work together? And I think that's what was most exciting for me coming out of it. It wasn't only just the acknowledgment of partnership and the engagement, but the creativity and the idea generation that came from if we partnered together, we could advance this more quickly. I think that's really what Wells Fargo is trying to do in this space, is we're trying to say, can we bring a group of people together as the convener, people that have common shared goals and interests, and can we identify a handful of ideas that we could really move forward in a meaningful way with Wells Fargo leveraging our resources and our distribution network across the different lines of business and across the country to be able to solve these problems. And so I think it was a tremendous opportunity to have a positive impact on the communities where we all work and live and play. And it was just really exciting to see all of that come together. And I can't wait to see the outcomes that actually get produced as a result of it. So it was an exceptional experience for me for sure. But, you know, we're just not talking about the fact that it was a great experience in a great location for a couple of days. But I really do think about and as I said Danielle, the business opportunity that gets created going forward. And so I'd be great to hear you talk a little bit about how these engagements really drive business results from Wells Fargo.
>> Danielle Squires:
Yeah, and I think it kind of brings us back to the idea that diverse business is good business.
>> Kristy Fercho:
Sure.
>> Danielle Squires:
And you talked about that. We're not just talking, but we are, we’re sitting there, we're analyzing, we're dissecting, and we're really feeding off, I think, the energy and the positivity in the room with thoughts on what solutions can be and to go out and drive them. I always say this isn't a one bank solution. This isn't a one person, a one company solution. What took hundreds of years to really disenfranchise people and systematically, it's not going to be solved by one bank or one person over the next couple of months. But really to be very deliberate, very on top of it and very forward looking and forward thinking over the next several years and paying attention to every spot that's out there where we can actually do better and do stuff together. And I think that's really what's important. And as you talk about driving business, right, the things that we think of are where are there real estate opportunities in the zones that need development and need investment and how can we bring groups of people together to really do that together? Where are the opportunities, where there are capital raising needs and ideas, and how can we bring those who have capital together with those who need capital to get it right? That's actually how businesses grow and develop by having right access to capital, having the right ideas and the right support behind them. And so, Wells Fargo can be a part all along the way, all three of those. But again, if we can bring more people along, we can grow faster and grow bigger together. And I think that's pretty big. So from us, from a business perspective, we look at how many financing opportunities are there at that table, right, that we can help be a part of as well. How many companies realize that they can grow by, by purchasing another company that's out there? Maybe they met them there or maybe they have an idea from there from out of it. How can we help them and guide them through that process and be value add there? You know, some of the other things I think about too are how far and wide can this message go? And by not limiting this to one industry, or not limiting this to sort of one type of group or one geographic location. What we've also done to spread the word wide and far, right?
One of the things I said at that conference I think is really important that we talk about all the time is the things that we discuss in these inner circles or these meetingsor these groups to move forward. You know, I think I said something like what happens in New Orleans doesn't stay in New Orleans. It’s not Las Vegas, right? We kind of move things forward and we've got to do more conversations like this. So, if there's even somebody listening today who says, you know, I have a great idea, great. We want to hear that idea. We want to know what we can do together. And so to me, that's what driving business forward looks like. It's creating opportunities and places where people can bring ideas to us or we can bring ideas to them. And there's some sort of business driving opportunity going forward that we do together and bring other and more people in.
>> Kristy Fercho:
Yeah, and you said something critical there, which I think is really important for people to hear. When you think about the large banks or financial institutions, I think most people probably think about, oh, we're in competition. And while that may be true in a lot of areas, it is not true in this area. And I love how you captured, you know, the complexity of this issue really does require us to all work together to bring this forward. So, this is a space where collaboration and cooperation actually is in all of our mutual shared interests. If somebody has got a great idea, let's share it so we can build on it and expand on it. And I think that's how we think about this work at Wells Fargo, which is people are out doing great things all over this country. And, and as we're looking at it, we're saying, where can we partner and engage to be able to add value so that the level of success achieved is greater because of our involvement. And that's a little bit of the measuring stick that we're going to hold ourselves accountable to, which is did we make it better by engaging and involving and could we then grow this? And so that level of cooperation is, I think, really important in this work. No one can do it alone.
>> Danielle Squires:
Yeah, it actually makes me think of one other thing that we talked about and that we continue to think is a critical part. It's we’re moving and I mentioned this in the beginning, the minority depository institutions specifically there are 20 Black owned banks in the United States. Now, obviously there were more before, but only 20 now. And while we've played at Wells Fargo, in part in helping to grow and maximize their efforts and their positive work through deposits, through assistance, through guidance, through equity investments, $50 million across 13, I have to say there's more to do and there's more that we can do and there's more that other banks can do and more that other companies can do with placing deposits in them as well and helping them grow. They serve a tremendous community team and they serve a group of folks across the United States who need their services and need their bank. Again, you said it. It's not a competition in that respect. Right. I will say that I look forward to the day where we are 30, 40 years from now, and maybe this becomes a larger competition to get all this done with all these banks. But the point is, right now, it isn’t. Right now we all need to be in this and doing that work, like you said. And so, Kristy, also one of the greatest things I think, about our Black Business Leaders Summit is, again, this wasn't sort of corporate investment banking specific, right? This included Ruth Jackson, from our commercial bank, who was in conversation with Wole Coaxum from MoCaFi. Right. An amazing company, diverse owned company, doing business with governments out there, one that we've invested in and one that we want to see continue to grow. In addition to that, had the opportunity to speak on Bloomberg Radio with Jon Weiss, who's the head of our Corporate and Investment Bank and your peer on the Wells Fargo Operating Committee. It's just truly coming together and understanding that together we can push all of this forward when we work together to do it. And then the other thing I'd mention as I continue to talk about our minority depository institutions, Todd McDonald, who's president of Liberty Bank, Right. One of the oldest and the largest Black owned MDI that's out there and based in New Orleans, and he was in conversation with Nicole Elam, who's president of the National Bankers Association and CEO there, and the National Bankers Association, as you know. But maybe many of our listeners may not know is the trade organization for all the MDIs, of which there are 144. So to have them in conversation with the American public on Bloomberg Radio with well over a million listeners really, I think broadened the horizon and the reach of our MDIs. And so these are the things that I think were so wonderful to accomplish through Black Business Leaders Summit. And it was our inaugural summit, which, you know, as you said before, from an excitement perspective, I think it only gets bigger and better from here. So I'm just so happy that those participants can play a really large part of the success and hopefully does tremendously well for their businesses as well.
>> Kristy Fercho:
Yeah, and I couldn't agree more Danielle. And what was powerful for me as well is, you know, the power of Bloomberg being there, it was a microcosm of the rooms that, you know, are happening all over this country, right. People coming together and convening to really solve business issues and the Bloomberg interviews just gave people outside of the Black Business Summit visibility into the conversations that are happening in this space. And when you talk about the spectrum for Wells Fargo, and I think that really is important, we talk about this access across the entire continuum from unbanked all the way up to ultrahigh net worth and from small mom and pop small business all the way up to large corporate banks. I mean, you had Dave Steward in the room, right, the largest privately held Black business in the country with Worldwide Technologies and the conversation and insight about how he started and really grew that business, because there was a lot of people in that room that are thinking about how do I get from being, you know, $5 million to $10 million and $10 million to $25 million, $25 million to $100 million, And you have Dave there sitting I think I'll do $20 billion this year in revenue. It's pretty powerful and you certainly can't leave the conversation without talking about the fireside chat that I had the opportunity to facilitate with Chairman T.D. Jakes and the work that we're doing with our disruptive partnership with the T.D. Jakes Enterprises and really the potential to really reach into these communities. And I think, again, going back to this theme about partnership and engagement, the power of being able to have folks who are so plugged in and entrenched and really trusted advisor and source like a T.D. Jakes, and to be able to be at the table and in conversation with him about what are the needs of the community, how do we earn the trust, how do we provide access when we show up with a product or a solution? How do we ensure that they actually trust that we're going to do the right thing in the communities? And that's really, I think, the power of the conversation that got forged at the Black Business Leaders Summit. But also it really is the start of conversations that will continue long after New Orleans.
>> Danielle Squires:
I have to tell you, Kristy, this was a really, really incredible conversation and really just the start, as you said, it's one where we have to continue and have to continue to make progress. You talked about it. We're committed to advancing diversity, equity and inclusion by helping ensure all people across our workforce, our communities, our partners and our clients feel valued and respected, have equal access to resources, services, products and opportunities to succeed. We want to be at the forefront of it. We want to partner with people to get it done. So I have to thank you so much for joining me today. And for our listeners, please stay tuned for more conversations from our diverse segments leaders as well in the coming weeks and months. As community and client leaders, we are here to serve you and we are here to work with you. So we thank you very much for listening today.
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